Nuvocargo, a logistics platform for US-Mexico trade, has raised $20.5 million, led by Tiger Global Management. This raises Nuvocargo’s valuation to $180 million, almost tripling the $70 million it was valued at when it raised $12 million in April.
The round also featured the participation of The Flexport Fund, Kavak COO Federico Ranero and major existing investors such as QED Investors and NFX. Previous Nuvocargo investors include Y Combinator, Nubank founder David Velez and Magma Partners, among others. The additional funding brings Nuvocargo’s total raised to date to $37.8 million since its launch in late 2019.
Nuvocargo announced their $12 million Series A with a $70 million valuation back in April 2021, and they still had the majority of these funds when Tiger contacted them. “We didn’t need the capital, but Tiger showed real conviction and moved fast with their term sheet,” said Nuvocargo co- founder and CEO Deepak Chhugani.
Since April, the company has increased its revenue by around 3x and the team has grown from 30 employees to 80. By 2022, Nuvocargo expects to exceed 200 employees in the US and Mexico, and generate tens of millions of dollars in annual revenue. Nuvocargo is on track to close 2021 with 5x revenue growth compared to 2020.
Nuvocargo will use the funds to continue accelerating its growth, expanding its product offering in the industry and strengthening its network of carriers and shippers on both sides of the border. Similarly, it is driving the development of new sources of income, starting with additional financial products for shippers and carriers. These efforts are aimed at securing a piece of the US-Mexico supply chain financing market, estimated at more than $125 billion.
Nuvocargo is also announcing the launch of the first in a series of financial products: QuickPay for Carriers. This product is basically a cash advance for carriers on the Nuvocargo marketplace. QuickPay for carriers has been growing processing volumes by 35% weekly and recently crossed seven figures in annualized transaction volume in just a few short weeks since launch, explained Chhugani.